EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2023

Basic earnings per common share is computed by dividing income or loss attributable to common stockholders by the weighted average number of shares of basic common stock outstanding. The Company’s Series A Convertible Preferred Stock is classified as a participating security in accordance with ASC 260. Net income allocated to the holders of Series A Convertible Preferred Stock was calculated based on the stockholders’ proportionate share of weighted average shares of common stock outstanding on an if-converted basis.

For purposes of determining diluted earnings per common share, basic earnings per common share was further adjusted to include the effect of potential dilutive common shares outstanding, including unvested restricted stock and performance-based stock units, using the more dilutive of either the two-class method or the treasury stock method, and Series A Convertible Preferred Stock using the if-converted method. Stock options and warrants that were out-of-the-money were not included in the denominator for the calculation of diluted EPS. Under the two-class method of calculating diluted earnings per share, net income is reallocated to common stock, the Series A Convertible Preferred Stock, and all dilutive securities based on the contractual participating rights of the security to share in the current earnings as if all of the earnings for the period had been distributed.


	For The Three Months Ended June 30,				For The Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income	$	51,509	$	9,158	$	92,736	$	15,838
Less: dividends paid to Series A convertible preferred stockholders	(6,856)		—		(13,637)		—
Undistributed income	44,653		9,158		79,099		15,838
Income allocated to participating preferred shares	(3,796)		—		(6,727)		—
Net income attributable to common stockholders	$	40,857	$	9,158	$	72,372	$	15,838

Denominator:
Weighted average basic common shares outstanding	76,845		75,451		76,759		75,472
Dilutive effect of common shares	2,099		2,921		2,100		2,925
Weighted average diluted shares outstanding	78,944		78,372		78,859		78,397

Earnings per share:
Basic	$	0.53	$	0.12	$	0.94	$	0.21
Dilutive	$	0.52	$	0.12	$	0.92	$	0.20

For the three and six months ended June 30, 2023, 7.3 million of potentially dilutive securities were excluded from the computation of diluted net income per share related to common stockholders as their effect was antidilutive.